Financial Modelling

Home/Financial Modelling

Corkscrew Calculations using Dynamic Array Functions

by Jeff Robson Corkscrew Calculations using Dynamic Array Functions If you've come to this page expecting information about how to open your wine bottles, you're going to be very disappointed!  Sorry! The corkscrew calculations we're talking about here are those you'd use when calculating a balance sheet account in a financial model. Accounts Receivable Example [...]

Financial Modelling using Dynamic Array Functions – no Copying & Pasting!

by Jeff Robson Financial Modelling using Dynamic Array Functions Best practice financial modelling has always been to enter your formulas in blocks: enter a formula, then copy this across and possibly down also, making sure you have your absolute and relative references set correctly. This is very useful because it is faster to build a [...]

AI and the Future of Financial Modelling

AI and the Future of Financial Modelling Financial Modelers spend most of their lives thinking about the future and imagining different scenarios for their clients. But what about the future of financial modelling? Can Artificial Intelligence Replace the Modeler? There are some modelers who predict that artificial intelligence (AI) and machine learning will eventually become [...]

What to do when they just fired your Excel Guru

"OMG! They Fired our Excel Guru!" Unfortunately, this is all too common these days. Companies, in their over-zealous quest to reduce costs, fire the one person who actually knew how to operate that really complicated Excel spreadsheet that's critical to the report you need to send out next week. What were they thinking!!! Now what? [...]

CFO Secrets of Analysing under Pressure

CFO Secrets of Analysing under Pressure The CFO and their Finance Department are under more pressure than ever before as a result of cost-cutting, staff cuts and an ever increasing demand for analysis to support business decisions like: What are the cost synergies if we acquire X? What if we cut projects A & B, but [...]

If you’re not Modelling Depreciation like this, you’re doing it the hard way!

Depreciation is one of those concepts that sounds easy and simple … until you try to put it into a financial model! In this blog, we start with Excel’s standard depreciation functions, then show two much better, more functional and more elegant ways to calculate depreciation. 1. Excel Functions Excel has some [...]

7 Forecasting Habits of Highly Successful Companies

Market volatility, depressed prices and slow growth are major factors affecting virtually all companies. For everyone, the focus on maintaining and improving their financial position is intense and this means planning, budgeting and forecasting has never been more critical to success. So here are the seven forecasting habits of highly successful companies: 1. Forecast in two directions Top [...]

What do you do when costs go bad?

What do you do when costs go bad? CFOs in the mining, resources & engineering sectors are facing cost pressures and pricing volatilities that are squeezing profits. Key risks on the radars of many CFOs include: Declining commodity prices How to reduce wage, salary and contracting costs (that are often combined with diminishing productivity). Increasing taxes [...]

How to Gain a Competitive Advantage from Forecasting

Accuracy of Budgets and Forecasts In times of increasing volatility, decision-makers have an even greater need for meaningful, accurate, up-to-date financial projections so they can respond to changes in economic conditions rapidly. In a recent survey of global corporations, research firm Aberdeen Group found that market volatility is the major challenge for effective financial [...]

 Valuing Assets & Cash Flows

Valuing Assets & Cash Flows When I do a company valuation, I've heard that I should model the value based on cash flows then add the asset values to get the total value. Is this correct? By Jeff Robson   Valuation Models There are two main types of valuation models: asset-based and flow based. [...]

 Spreadsheet Risk Factors

Spreadsheet Risk Factors Inherent Risk Factors in Key Spreadsheets By Jeff Robson Spreadsheet auditing risk factors arise from many causes. And, in any economic climate, there's nothing more important time than ensuring nothing can undermine your company's credibility! From research performed by Access Analytic and others, here are a few of the key inherent [...]


IRR vs RRR vs WACC What is the difference between IRR, WACC and RRR? By Jeff Robson IRR is the internal rate of return. RRR is the required rate of return. 1. IRR The IRR is simply the discount rate, which, when applied to a series of cashflows, gives a net present value (NPV) [...]